Harte-Hanks Beats Analyst Estimates on EPS

Harte-Hanks (NYS: HHS) reported earnings on Jan. 31. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Harte-Hanks met expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.

Gross margins expanded, operating margins were steady, and net margins were steady.

Revenue details
Harte-Hanks tallied revenue of $224.6 million. The five analysts polled by S&P Capital IQ hoped for sales of $226.6 million. Sales were 4.8% lower than the prior-year quarter's $236.0 million.


Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at $0.23. The five earnings estimates compiled by S&P Capital IQ anticipated $0.22 per share on the same basis. GAAP EPS of $0.23 for Q4 were 8.0% lower than the prior-year quarter's $0.25 per share.


Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 20.5%, 20 basis points better than the prior-year quarter. Operating margin was 10.6%, about the same as the prior-year quarter. Net margin was 6.6%, about the same as the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $201.4 million. On the bottom line, the average EPS estimate is $0.15.

Next year's average estimate for revenue is $858.8 million. The average EPS estimate is $0.78.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 52 members out of 66 rating the stock outperform, and 14 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Harte-Hanks a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Harte-Hanks is hold, with an average price target of $10.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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